Vital Infrastructure Property Trust · TSX:VITL.UN
Vital Infrastructure Property Trust — Northwest Healthcare Properties REIT — Q4 2024 Earnings Presentation
45 slides from Vital Infrastructure Property Trust's earnings presentation, Mar 10, 2025
Slide 1: Q4 2024 Financial Results Presentation
Northwest Healthcare Properties REIT Q4 2024 Financial Results Presentation March 10, 2025 TSX: NWH.UN NWH REIT | Q4 2024 | 1 | Palm Beach Currumbin Clinic, Australia
Slide 2: Contents
Presenters Contents Craig Mitchell CHIEF EXECUTIVE OFFICER Northwest & Healthcare Real Estate 3 Q4 2024 & FY 2024 Results(1) 5 Stephanie Karamarkovic CHIEF FINANCIAL OFFICER Achievements 6 Financial Performance 9 Capital Management 14 Q&A Property Performance 17 Property Portfolio Overview 22 Mike B
Slide 3: About Northwest
| Le Carrefour Medical, Canada About Northwest Northwest Healthcare Properties REIT (TSX: NWH.UN) owns, manages, and develops real estate exclusively focusing on tenants who are operators in healthcare, research, life sciences and education, positioned in key strategic markets. High quality globally
Slide 4: Why Healthcare Real Estate?
Why Healthcare Real Estate? Northwest focuses on the cure segment of the healthcare real estate spectrum, a defensive asset class that provides attractive risk adjusted returns, driven by an aging population. Growing Growing need Sustained Shift of care to Increased Transition demand for for life &
Slide 5: Results: Q4 2024 & Full Year 24
| Grace Hospital, New Zealand Results Q4 2024 & Full Year 2024 NWH REIT | Q4 2024 | 5
Slide 6: 2024 Achievements
2024 Achievements GROWING EARNINGS REDUCING DEBT 10.0 9.8 3.8 3.6 3.6 9.5 +15% 15% GROWTH IN 3.4 9.1 EARNINGS -26% >$900M NET DEBT Debt ($Billion) 3.2 AFFO (c/pu) 9.0 92% PAYOUT RATIO 3.0 REDUCTION 8.5 8.6 in Q4-24 (<90% EXCL. 2.8 2.7 ~$240M UNDRAWN 8.5 DRIP) 2.6 LINES TO REPAY 8.0 >7% DIV
Slide 7: 2024 Achievements
| Xpert Clinic Eindhoven, Netherlands Completion of strategic initiatives 2024 Achievements to drive next phase of growth 01 Debt Reduction 02 Improved capital management (4) Divested $1.4 billion(1) of assets at a ~6.5% weighted average Improved cost structures, including G&A cost reduction of
Slide 8: Looking Ahead
Looking Ahead ~76% The REIT is well positioned for growth in 2025 Of debt is subject to fixed interest rates Capital Management Migrate capital structure to majority unsecured debt platform Increase weighted average term outstanding >96% Leases with contractual Increase liquidity rent growth Earning
Slide 9: Q4 2024 Financial Performance
| Bergman Clinic Arnhem, Netherlands Q4 2024 Financial Performance NWH REIT | Q4 2024 | 9
Slide 10: Financial Snapshot
| Epworth Geelong, Australia Financial Snapshot (consolidated basis) FINANCIAL HIGHLIGHTS DECEMBER 31, 2024 DECEMBER 31, 2023 VARIANCE $ VARIANCE % Assets Under Management 8.3 9.9 (1.6) (16.2%) Gross Book Value(1) 6.0 7.6 (1.6) (21.1%) Debt – Including 3.0 4.0 (1.0) (25.0%) Convertible Debentures De
Slide 11: Proportionate Income Statement
Proportionate Income Statement(1) THREE MONTHS ENDED TWELVE MONTHS ENDED $1.4B C$ MILLIONS DEC-31, 2024 DEC-31, 2023 (%) CHANGE DEC-31, 2024 DEC-31, 2023 (%) CHANGE Investment property dispositions offset by 4.0% Net Operating Income 64.9 86.0 (24.5%) 299.6 336.1 (10.9%) annual SPNOI growth(4) Manag
Slide 12: Proportionate Balance Sheet
Proportionate Balance Sheet(1) C$ Billions DECEMBER 31, 2024 DECEMBER 31, 2023 $ Change % Change Investment Properties(2) $1.4B 4.1 5.7 (1.6) (27.7%) Completed non-core asset sales(3) Other Assets 0.5 0.4 0.1 22.1% Total Assets 4.6 6.1 (1.5) (24.6%) >$900M Mortgages, Loans & of debt fully repaid(4),
Slide 13: NAV Bridge
NAV Bridge(1) $411M $111M $19M Property revaluation FX impact loss to Reduction to Global loss driven by ~50bps equity for the year Manager valuation portfolio cap rate expansion $10.86 ( 1.67 ) GLOBAL MANAGER 1.72 ( 0.45 ) ( 0.08 ) ( 0.11 ) $8.55 1.65 9.14 6.90 Q4 2023 FV Adjustments to IP FX Adjus
Slide 14: Q4 2024 Capital Management
| Hospital e Maternidade, Brazil Q4 2024 Capital Management NWH REIT | Q4 2024 | 14
Slide 15: Debt Maturity Profile
Debt Maturity Profile $1.7B(2) ~$240M <$285M Of 2025 debt maturities Northwest’s debt maturities Total debt repaid, amended, refinanced Undrawn lines provide liquidity and repayment outstanding, to be including subsequent events(1). or extended options for short-term addressed through normal course
Slide 16: Interest Rate Hedging Profile
Interest Rate Hedging Profile Cost of Debt is well hedged, managing risk. HEDGING MATURITY PROFILE DECEMBER 31, DECEMBER 31, 3.32% RATES 1,200 3.22% 3.50% 2024(1) 2023 3.04% 1,000 2.78% 3.00% Weighted Average Variable Debt 6.26% 7.85% Weighted Average Interest Rate 2.50% Weighted Average Fixed Rate
Slide 17: Q4 2024 Property Performance
| Serenity Behavioural Hospital, United States Q4 2024 Property Performance NWH REIT | Q4 2024 | 17
Slide 18: Net Operating Income Bridge
Net Operating Income Bridge ($M)(1) 4.0% $1.5M Divestment of Over 96% non-core assets in Of Northwest’s rents SPNOI growth vs. prior Of additional line with strategy are subject to comparable period(1) development income contractual growth(2) 10.0 30.9 336.1 15.6 299.6 Q4-2023 SPNOI Dispositions & N
Slide 19: Leasing Achievements
| Utrecht Eyescan MOB, Netherlands Leasing Achievements REGION LEASE RENEWALS RETENTION % NEW LEASES (SF) EARLY LEASE (SF) EXTENSIONS (SF) North America 78,400 91.2% 36,300 - Brazil - - - 708,400 Europe 23,700 74.3% 14,000 - ANZ 1,400 100.0% 4,300 - TOTAL – Q4 2024 103,500 86.7% 54,600 708,400 TOTAL
Slide 20: GRESB Results
| Ekera Medical Centre, Australia GRESB Results In October 2024, GRESB again announced Vital Healthcare (managed by Northwest) and Northwest Healthcare as Global Sector Leaders (the highest possible award) for ESG across development for listed healthcare globally. This recognition highlights our ong
Slide 21: Property Portfolio Overview
| Belmont Private Hospital, Australia Property Portfolio Overview NWH REIT | Q4 2024 | 21
Slide 22: Global Portfolio Overview
Global Portfolio Overview GLOBAL SUMMARY 172 13.6 15.9M 96% $8.3B(1) PROPERTIES WALE (YRS) GLA (SQFT) OCCUPANCY AUM BRAZIL CANADA USA NETHERLANDS GERMANY AUSTRALIA NEW ZEALAND 8 Properties 48 Properties 14 Properties 16 Properties 27 Properties 45 Properties 14 Properties 17.9 WALE (YRS) 5.3 WALE (Y
Slide 23: NOI Is Strongly Diversified By Regions & Asset Mix
| Landsberger Allee 44, Germany NOI Is Strongly Diversified By Regions & Asset Mix(1) Income from stable rent collections and long-term leases. REGIONS ASSET MIX Life Sciences Q4 2024 2% Brazil Q4 2024 20% North America 17% 2% MOB 35% 34% Hospital and 41% 35% Healthcare Q4 2023 Q4 2023 Europe Facili
Slide 24: Lease Maturity Profile
Lease Maturity Profile(1) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2025 2026 2027 2028 2029 2030 2031 2032+ North America Brazil Europe Australasia Total 2025 2026 2027 2028 2029 2030 2031 2032+ Total North America 9.6% 9.6% 10.8% 17.8% 8.3% 8.3% 6.1% 29.5% 100% Brazil 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.
Slide 25: Northwest Healthcare Properties REIT Summary
| St John of God Private Hospital, Australia SUMMARY Northwest Healthcare Properties REIT Ticker NWH.UN Listed Exchange TSX Distribution Payable (C$) $0.03 / Monthly Unit Price(1) $4.81 Market Capitalization (C$)(1) $1.22 Billion Distribution Yield(1) 7.48% 52-Week Trading Range(1) $3.93-$5.88 Volum
Slide 26: Healthscope Update
Healthscope Update PRIVATE HOSPITALS ARE ESSENTIAL TO AUSTRALIA’S Background ENTIRE HEALTH CARE SYSTEM Healthscope are a critical provider of healthcare services and the 2nd largest private hospital operator in Australia ~68% of elective surgeries in Australia Sector has experienced margin press
Slide 27: Contact Information
| Wakefield Hospital, New Zealand Contact Information Craig Mitchell, CEO craig.mitchell@nwhreit.com Mike Brady, President mike.brady@nwhreit.com Stephanie Karamarkovic, CFO stephanie.karamarkovic@nwhreit.com Alyssa Barry, Investor Relations alyssa.barry@nwhreit.com 604-997-0965 NWH REIT | Q4 2024 |
Slide 28: Disclaimer
Disclaimer This presentation provides a summary description of Northwest Healthcare Properties Real Estate constant, local real estate conditions remaining strong, interest rates remaining at current levels, (viii) Investment Trust (“NWH” or the “REIT”). This presentation should be read in conjuncti
Slide 29: Appendix
| Grace Hospital, New Zealand Appendix NWH REIT | Q4 2024 | 29
Slide 30: Proportionate Income Statement (three months ended December 31)
Proportionate Income Statement (three months ended December 31) DECEMBER 31, 2024 DECEMBER 31, 2023 PROPORTIONATE BASIS CHANGE PROPORTIONATE PROPORTIONATE C$ MILLIONS IFRS BASIS ADJUSTMENTS(1) BASIS(1) BASIS(1) ($) (%) Net Operating Income 77.8 (12.8) 64.9 86.0 (21.0) (24.5%) Management Fee Income(2
Slide 31: Proportionate Income Statement (year ended December 31)
Proportionate Income Statement (year ended December 31) DECEMBER 31, 2024 DECEMBER 31, 2023 PROPORTIONATE BASIS CHANGE PROPORTIONATE PROPORTIONATE C$ MILLIONS IFRS BASIS ADJUSTMENTS(1) BASIS(1) BASIS(1) ($) (%) Net Operating Income 349.4 (49.8) 299.6 336.1 (36.5) (10.9%) Management Fee Income(2) 15.
Slide 32: Proportionate Balance Sheet
Proportionate Balance Sheet DECEMBER 31, 2024 DECEMBER 31, 2023 PROPORTIONATE BASIS CHANGE C$ BILLIONS IFRS BASIS ADJUSTMENTS(1) PROPORTIONATE PROPORTIONATE BASIS(1) BASIS(1) ($) (%) Investment Properties(2) 5.3 (1.1) 4.1 5.7 (1.6) (27.7%) Other Assets 0.8 (0.3) 0.5 0.4 0.1 22.1% Total Assets 6.0 (1
Slide 33: G&A Summary
G&A Summary C$ Millions Index Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 General and Administrative 19.3 15.0 17.4 15.5 17.3 14.7 20% Expenses Less: Unit-Based Compensation A 1.9 (0.7) 2.6 0.3 (0.5) 2.1 Reduction in G&A attributed to Less: Severance - - - - (3.8) - AFFO as result of ~20% global
Slide 34: Total Dispositions
Total Dispositions INVESTMENT PROPERTIES DISPOSITION PROCEEDS ($M) REGION PERIOD PROPORTIONATE CONSOLIDATED During FY 2024, the REIT Non-Core Assets has achieved the following: Australasia Q4-24 11.1 39.0 North America Q4-24 2.9 2.9 Total proportionate non-core Europe TOTAL – Q4 24 Q4-24 29.8 43.8 2
Slide 35: Northwest's Strategic Healthcare Property Platform
Northwest's Strategic Healthcare Property Platform CORE PRESERVE, BUILD & GROW COMPETENCIES Investment Development Asset Management Management Management WHOLLY OWNED FEE BY THE REIT GENERATING Funds Management JV’s INVESTMENTS Direct Property Unlisted Ownership Public Institutional Companies JVs Eu
Slide 36: Deep Connections With Key Operating Partners
Deep Connections With Key Operating Partners Northwest has deep relationships with the biggest brands in health and health sciences across its regions. NWH REIT | Q4 2024 | 36
Slide 37: Top 10 Tenants
Top 10 Tenants The REIT’s 10 largest tenants for the three THE REIT'S FIVE LARGEST months ended December 31, 2024. TENANTS INCLUDE: TOP 10 TENANTS REPRESENT 35.1% OF PROPORTIONATE RENT 1 Rede D'Or, Brazil: The largest integrated health care # OF network in Brazil TENANT REGION % LOCATIONS 1 Rede D'O
Slide 38: Capital Lite Investment Strategy
| Playford Health Hub, Australia CASE STUDY Capital Lite Investment Strategy (Vital Healthcare Property Trust) Leveraging our experience to increase value: Asset-lite business models have been associated with better return on assets, lower profit volatility and greater adaptability in an ever-changi
Slide 39: Vital Healthcare Property Trust (NZX:VHP)
CASE STUDY: Vital's tenants include the Vital Healthcare Property Trust (NZX:VHP)(1) largest three private hospital operators in New Zealand and six of the top ten private Northwest owns a ~28.3% interest in the only specialist healthcare hospital operators in Australia. landlord on the NZX and reta
Slide 40: Commitment to ESG
| Macarthur Health Precinct – Stage 1, Australia CASE STUDY: Commitment to ESG Completion of 6-star Green Star rated building Project Overview Delivery & ESG Northwest Healthcare Properties, as Stage 1 practical completion reached in manager of Vital Trust, acquired the February 2024, 2 months a
Slide 41: Jerry Coughlan Health & Wellness Centre
| Jerry Coughlan Health & Wellness Centre, Canada CASE STUDY: Jerry Coughlan Health & Wellness Centre Project Overview Delivery & Completion Design and construction of a Substantial completion in FY23 and purpose built, four-storey medical formal opening in Q1-24 office and ambulatory care hybri
Slide 42: Epworth Healthcare, Melbourne Australia
CASE STUDY: Epworth Healthcare, Melbourne Australia Northwest has supported Epworth for over 15+ years with expansion opportunities, advice and capital. Developments have added to the quality and value of assets, driving operational benefits and efficiencies that attract practitioners. 2003-2005: 20
Slide 43: Experienced Management Team
Experienced Management Team Craig Mitchell, CEO Tracey Whittall, COO Craig Mitchell has more than 20 years’ experience Prior to joining Northwest in 2024, Tracey specializing in the property industry in Australia. His was COO at Flexiti, a leading financial services company previous roles include Ex
Slide 44: Experienced Board of Trustees
Experienced Board of Trustees Northwest's strong governance framework ensures diversity is considered in determining optimal board composition. Northwest's experienced Board of Trustees functions Dale Klein Peter Aghar Graham Garner Bobby Julien independently of Non-Executive Chair Trustee Trustee T
Slide 45: Non-IFRS Measures
| Sturgeon Medical Centre, Canada Non-IFRS Measures 1. AFFO 8. Net Asset Value (“NAV”) 2. AFFO per Unit 9. Net Operating Income (“NOI”) 3. AFFO Payout Ratio 10. Same Property NOI (“Same Property NOI”/ “SPNOI”) 4. Adjusted EBITDA 11. Debt to Gross Book Value 5. Investment Properties on a Proportionat
Northwest Healthcare Properties REIT — Q4 2024 Earnings Presentation on 6ix